What has America the land of dreams for the past 50 years? What has divided America for the rest of the world? These questions have fascinated me all my life. I read an interesting article in The Wall Street Journal the other day, which gave an interesting perspective. He said the biggest reasons for the American dream life, especially after 1970, the "credit" or "use." Unfortunately, these two words that we have started, the Americans fear most of theseDay.
Secret Behind America's economy
America is the country has always been the innovators. However, in order for an innovation to life, it is imperative for companies to gain access to cheap credit. This is where U.S. banking system came to America to help. Banking system helped start this company. As these companies get cheap loans, they were. They were prepared and domino effect throughout the industry and the lives of middle class American people. Itis a known fact that about 70% of the U.S. population works for small areas. Therefore, the jobs of around 70% of the U.S. population, because the American financial system.
Where American Financial system went wrong
Some of these benefits were to be used only very poorly by some corrupt CEOs and their subordinates. If the system is designed, it was not that banks should loan provider loans dimension to the range of several hundred thousand dollar questionIndividuals, representing 20-30 thousand dollars per year, or the people who have none or very little credit. Now that these companies have collapsed, they're out there on the system itself. Human beings are responsible for the entire financial problems and issues every taxpayer dollars go to companies that are victims of bad policies that have been made by the head was held. Issue is further complicated, the U.S. government as part of populist measures in some carefully chosenon the implementation of rules on complete system. Just last week, the House of Representatives Malooney passed the bill with 17 amendments.
The bill, after many industry insiders will kill the entire income of a credit card industry. Last quarter of BAC (Bank of America) of 1.7 B dollar loss in its credit card division and Chase (JPM) lost about $ 540 million. In such environments, if the government takes the primaryRevenue sources, it is basically killing the entire industry. Industry experts predict that if this is now a law, a credit card would be a luxury for people with good credit only. This would the people go back to the purchase with cash and credit cards. This in turn would adversely affect the distribution of electronic stores like Best Buy, furniture stores like Pottery Barn. Government is further to the limits of the NSF fees for checking accountAccounts. Is not that a bit too regulatory? Instead of educating people about to do the right thing, the government, but the choice of the parameters of the game itself, especially if these parameters help achieve the country at the position currently enjoys in the international financial map change.
If all these rules go through the American financial industry would be back to 363 models from 1950 to go. Importance of receiving a deposit of 3% there was a large industrialists at 6% and go back toPlay golf at 3 clock. Al though it sounds awesome on paper, it is a curse for growth we have experienced our life time. It would not be more small businesses like banks are not in a position to give loans to those industries. Therefore, it will reject, innovation and the American dream begins to deteriorate.
Impact of recent developments in the Stock Market.
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